Connecticut House Bill HB05606

Connecticut 2019 Regular Session

• Introduced: 1/18/19
• Refer: 1/18/19

Caption

An Act Concerning The Social Security Benefits Exemption From The Personal Income Tax.

Impact

If enacted, HB 5606 would significantly change how Social Security benefits are treated concerning personal income tax in the state. By removing the income cap currently in place, many more taxpayers would qualify for the exemption than before. This expansion of eligibility is expected to increase the disposable income of senior citizens and retirees, fostering financial stability for this demographic group. The exemption is likely to encourage persons aged 65 and older to remain in the state, positively impacting local economies.

Summary

House Bill 5606 aims to amend section 12-701 of the general statutes concerning the Social Security benefits exemption from personal income tax. The bill seeks to eliminate the existing limits on taxpayers' federal adjusted gross income for the exemption of Social Security benefits. This legislative effort is designed to provide broader financial relief to individuals receiving Social Security, particularly benefiting retirees and those on fixed incomes.

Contention

While the bill is generally viewed favorably by advocates of social security benefits, there are discussions regarding the fiscal implications. Opponents argue that eliminating income limits on the exemption may reduce state tax revenue, which could affect funding for essential public services. Additionally, some legislators raise concerns about fairness, questioning whether high-income earners should be eligible for such tax breaks. These points of contention illustrate the ongoing debate over balancing tax relief for seniors and maintaining necessary state revenue.